www.guardianONLINE.co.nz
THE VOICE OF MID CANTERBURY 24/7
HONESTY, SELF-AWARENESS VITAL FOR ABS, SAYS HANSEN
P2
Guardian
Ashburton
www.guardianONLINE.co.nz
Wednesday, July 17, 2013
FIRST PUBLISHED SEPTEMBER 27, 1879
Looking for a builder with a little more experience? 4 Housing 4 Commercial 4 Farm
Contact Des anytime for an obligation free quote.
Phone 03 308 9936 or 0274 323 258 Home delivered from
90c Casual $1.40
TrustPower hits back at pricing accusations By Myles Hume TrustPower has hit back at accusations made by the Labour Party that Mid Canterbury customers are being overcharged. Labour finance spokesman David Parker referred to the latest quarterly domestic electricity price survey, saying the Mid-South Canterbury region had seen an increase of $91 in the year to May 15 in electricity prices with a $431 rise since 2008. He called the price hikes “over the top”, which had increased at more than twice the rate of inflation during the past 15 years. However, TrustPower community relations manager Graeme Purches said the figures had been “misinterpreted and distorted” by Labour. Power prices have become a main focus for the Labour Party which has teamed up with the Greens in a bid to introduce NZ Power, claiming they can save New Zealanders hundreds of dollars on their power bills. However, that has been rubbished by National which called it “a cynical and selfish attempt by left-wing parties to play politics with the value of New Zealand’s economic assets”. About 7000, or 40 per cent, of electricity users in Mid Canterbury are signed up to TrustPower, the survey showing the power company was charging the highest rate out of all power retailers in the district. But Mr Purches said the figures were based on the company’s standard rate, which a minority of its customers were signed up to. “The reality is 65 per cent of our customers aren’t on the pric-
Graeme Purches ing they used to get those figures, they are on a option called Friends Extra which offers four or five per cent off the unit rate and in return they sign up for a four or five years loyalty deal,” he said. He said Transpower’s transition charges have also contributed to price rises while lines charges had been altered in April, meaning they had risen in some areas. “The reality is most customers aren’t using the amount that’s been shown in the survey, and aren’t paying the prices shown in the survey.” Mr Parker said not everyone was on the same rate, but claimed “everyone was paying too much”. Mr Parker said power customers were facing hiked charges, when hydro stations and power companies were not facing increased costs. “Mid Canterbury is really, really close to all those cheap hydro stations, Ashburton is just down road from the Waitaki but why is it that you get no benefit from that? The benefit of that is being captured by power companies,” he said.
Alan Dent sizes up his effort on the curling sheet.
Photo Kirsty Clay 160713-kc-016
It’s all go on the ice at Staveley Ice sport aficionados and beginners enjoyed yesterday’s break in the weather, taking the opportunity for a spot of curling, ice hockey and skating at the Staveley Ice Rink. It was the second meet of the curling season for local players, who were taking the ancient sport seriously. Others were taking advantage of the school holidays to hone their ice skating skills. The rink is open from 1 to 5pm during school holidays, weather permitting.
ONLINE.co.nz
Photo Kirsty Clay 160713-kc-103
Check out our video
Sarah and Sam Maxwell spent the afternoon slip-sliding away.
Visitors from near and far enjoyed the icy experience.
Photo Kirsty Clay 160713-kc-065
New loan-to-value ratio to put homes out of reach for many By Sue Newman
photo kirsty clay 160713-kc-147
Houses for sale in Ashburton may become out of reach for many home buyers if they need to pay 20 per cent deposit.
First home buyers and investors could be shut out of the housing market when new loanto-value (LVR) ratios are imposed on home loans. As it attempts to rein in the housing market and make New Zealand houses more affordable, the Government plans to introduce new rules around lending that will make it much harder to secure a mortgage with a deposit of less than 20 per cent. And those changes will have a significant impact on first home
buyers who traditionally rely on a helping hand from parents to boost their savings, says McGregor’s Real Estate owner Trevor Hurley. “For many young people a 20 per cent deposit is a massive stretch. It will make it very difficult for them. “I know this is being put in place for a reason, but big picture, it will take out a lot of first home buyers,” he said. While many first home buyers opted for the Welcome Home package that provided finance with zero deposit, this came with a raft of restrictions. Up to
$200,000 can be borrowed without a deposit and up to $280,000 with a 15 per cent deposit of the amount over $200,000 $12,000. For most young people entering the real estate market for the first time, 10 per cent deposit was the norm, with most buying those homes in the $200,000 to $300,000 price range, requiring deposits of $20,000 to $30,000. Overnight those deposit requirements could double, Mr Hurley said. “This will put a lot of pressure, not just on parents who help out, but on the kids too. It will take a
lot of people out of the system and it will also affect investors, a lot of whom go in with just 10 per cent deposit.” The new lending rules would have the desired effect of quietening the housing market, particularly in Auckland where a 20 per cent deposit in some areas would be well over $100,000, he said. Ashburton’s Heartland branch manager Andrew Wilson said the LVR ration would mean no change for his bank. It had always had a 20 per cent deposit policy, he said. Across the board, however, the
cap was grim news for first home buyers, Mr Wilson said. For investors, however, with equity in other properties, he anticipates it will mean little change. Pushing LVR ratios out to 20 per cent was likely to also push out the day a young couple were able to get into the housing market. With a basic home in Auckland costing upwards of $500,000, the deposit required under the LVR cap would exceed $100,000, he said. The New Zealand Bankers’ Association says that most lending (79.6 per cent) is below 80 per cent of LVR.
Today’s weather
HIGH LOW
15
6